Dear all,
Our next seminar speaker at CEU is Namrata Kala (MIT Sloan).
You are all cordially invited to her in-person seminar.
Time and venue: April 22, Wednesday, 11.15am - 12.30pm, QS B-505, at CEU (51 Quellenstrasse, 1100 Vienna)
Seminar Title: "Power to the Personnel? The Impacts of Managerial Discretion vs. Worker Democracy in Employee Recognition"
Abstract: Worker agency – workers’ influence over organizational decisions – is a commonly-cited determinant of employee engagement, productivity, and organizational culture. We conducted a firm-level RCT in India, randomizing whether employee recognition was
determined: based on a worker vote (agency treatment), at the discretion of the manager (managerial discretion treatment), or at random and unrelated to performance (control). We find that workplace democracy increases worker attendance, but managerial discretion
improves productivity. Treatments impact firm culture and knowledge spillovers, with the manager arm reducing work-related discussions between workers. Winners in the manager arm are positively selected on attendance and productivity, while those in the democracy
arm are positively selected on attendance, social interactions, and likelihood of sharing the reward with co-workers in exchange for votes. These results highlight how what is valued in the workplace impacts worker behavior and firm culture, as well as the potential
for informal contracts among workers to interact with workplace incentives.
With questions, please contact the CEU seminar organizer, Timea L. Molnar, at molnartl@ceu.edu.